Slide 1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 2

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 3

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 4

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 5

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 6

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 7

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 8

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 9

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 11

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 12

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 13

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 14

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 15

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 16

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 17

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 18

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 19

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 20

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 21

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 22

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 23

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 24

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 25

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 26

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 27

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 28

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 29

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 30

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 31

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 32

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 33

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 34

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 35

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 36

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 37

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 38

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 39

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 40

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 41

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 42

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 43

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 44

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 45

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 46

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 47

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 48

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 49

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 50

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 51

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 52

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 53

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 54

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 55

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 56

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 57

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 58

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 59

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 60

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 61

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 62

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 63

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 64

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 65

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 66

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 67

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 68

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 69

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 70

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 71

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 72

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 73

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 74

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 75

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 76

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 77

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 78

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 79

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 80

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 81

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 82

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 83

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 84

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 85

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 86

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 87

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 88

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 89

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 90

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 91

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 92

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 93

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 94

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 95

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 96

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 97

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 98

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 99

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 100

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 101

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 102

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 103

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 104

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 105

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
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Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 106

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 107

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 108

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 109

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 110

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 111

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 112

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 113

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 114

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 115

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 116

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 117

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 118

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 119

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 120

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 121

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 122

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 123

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 124

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 125

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 126

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 127

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 128

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 129

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 130

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 131

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 132

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 133

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 134

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 135

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 136

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 137

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 138

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 139

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 140

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 141

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 142

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 143

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 144

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 145

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 146

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 147

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 148

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 149

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 150

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 151

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 152

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 153

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 154

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 155

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 156

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 157

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 158

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 159

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 160

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 161

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 162

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 163

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 164

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 165

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 166

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 167

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 168

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 169

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 170

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 171

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 172

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 173

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 174

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 175

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 176

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 177

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 178

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 179

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 180

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 181

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 182

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 183

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 184

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 185

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 186

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 187

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 188

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 189

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 190

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 191

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 192

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 193

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 194

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 195

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 196

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 197

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 198

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 199

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 200

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 201

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 202

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 203

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)


Slide 204

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Impact Analysis

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Stages BCP/DRP
Develop contingency planning policy
Conduct business impact analysis (BIA)
Identify preventive controls
Develop recovery strategies
Develop contingency plan
Test the plan and train personnel
Maintain the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threats

Controls

Vulnerabilities

Risks

Security
Arrangements

Assets

Asset Value

Potential Impact on Business

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Analysis
A pre-requisite to complete and
meaningful DRP program
It is assessment of threats to assets
Determination of protection required to
safe guard the assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Assessment Process
Identification of assets
Identifying threats to these assets and
assessing their likelihood
Identifying vulnerabilities and assessing how
easily they might be exploited
Correlate threats to assets
Ranking of risks
Identifying the protection provided by the
controls in place

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
The process of identifying, controlling
and minimizing or eliminating risks
that may affect information systems
for acceptable cost

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management - Direction
Reducing the risk
Avoiding the risk
Transferring the risk
Accepting the risk

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Degree of Assurance Required
It is not possible to achieve total
security
There will always be a residual risk
What degree of residual risk is
acceptable to the organization?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Risk Management
Defining an acceptable level of residual
risk
Constantly reviewing threats and
vulnerabilities
Reviewing of existing controls
Applying additional controls
Introducing policy and procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What are Assets?
An asset is something to which an
organization directly assigns value and
hence for which the organization requires
protection

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Information
data files
user manuals etc.

Software
application and system software etc.

Services
communications
technical etc.

Company image and reputation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Examples of Asset
Documents
contracts
guidelines etc

Hardware
computer
magnetic media etc.

People
personnel
customers etc.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets

Physical

Logical

•
•
•
•

Data
Information
Software
Documentation

•
•
•
•
•

People
Hardware
Facilities
Documentation
Supplies

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Some Assets
physical assets
personnel assets
intellectual property
trade secrets
corporate information
financial information
market research
strategic planning

customer lists
vendor lists
contact lists
information systems
R & D information
communications
meetings
future directions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Assets Valuation
Would depend on
Business impact on loss of asset
Period of time for which asset is
unavailable
Valuation of the competitor
Value of information rather than
replacement of hardware
Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Risk?
The potential that a given threat
will exploit vulnerabilities of an
asset or group of assets to cause
loss or damage to assets

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Risks
Protection of asset should be on the
basis of their criticality
How long can I continue without my
asset
What is the loss to business if asset is
not there
Can I continue operations otherwise

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Outage Impact & Allowable Outage
Times
R e s o u r c e

O u t a g e

Im p a c t

A l l o w a b l e
O u t a g e T im e

A u t h e n t ic a t io n
U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m
Se r v e r
D a t a b a s e Se r v e r U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E - m a il Se r v e r

U s e r c o u ld n o t s e n d e - m a il

2 d a ys

5 De skto p
Co m p u t e r s
Hub

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

N e t w o r k Ca b lin g

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

E le c t r ic P o w e r

U s e r c o u ld n o t a c c e s s In v e n t o r y S y s t e m

8 hours

P r in t e r

U s e r c o u ld n o t p r o d u c e In v e n t o r y R e p o r t s

4 d a ys

8 hours

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Critical
Only automated
Low tolerance to interruption
High cost of interruption

Vital
Level of tolerance is high
Can be operated manually for limited period
Cost of interruption is low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

System Ranking
Sensitive
Can performed manually for extended
time period
Additional resources required

Non Critical
Can remain inoperative
Data is not restored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Formulae for Comparing Risks
Asset Likelihood Vulnerability Measure
Cost of Threat
C
of Risk
A Occurrence
D
B
A+B+C
3
4
5
3
4
3
3
3
3
5
5
5
5
4
1
1
2
1
1
1
1

Risk
Ranking
E
High
Moderate
Very High
Low
Very Low

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat
A declaration of the intent to inflict harm, pain
or misery
Potential to cause an unwanted incident,
which may result in harm to a system or
organization and its assets
Intentional or accidental, man-made or an
act of God
Assets are subject to many kinds of threats
which exploits vulnerabilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Types of Threat
Man made Threats
Errors
Sabotage
Bombs
Strikes
Terrorist Attack
Competitors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Man made
Threats
Disgruntled
employees
Ex-employees
Hackers
Cracker
Fire

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Natural Threats
Floods
Hurricanes
Tornadoes
Earth-quakes
Fire
Lightning

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Threats
Technological
Deliberate threats
Accidental threats
Threat frequency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Threat Likelihood
Low
Less likely to occur

Medium
some history of occurrence

High
Good possibility of occurrence

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Impact of Threat
Loss of money
Loss of reputation or goodwill
Opportunities missed
Litigation
Threat on personnel
Break-ins or Hacks
Lost confidence
Business interruption
Reduced efficiency
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerability
A vulnerability is a weakness/hole in an
organization’s information security
A vulnerability in itself does not cause harm
It is merely a condition or set of conditions
that may allow a threat to affect an asset
A vulnerability if not managed, will allow a
threat to materialize

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Vulnerabilities
Absence
of
key
personnel
Unstable power grid
Unprotected
cabling
lines
Lack
of
security
awareness
Wrong allocation of
password rights

Insufficient security
training
No firewall installed
Unlocked door
Password same as
userid
Poor
choice
of
password
New technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
Controls are applied to
mitigate risk
bring to acceptable level
accept the risk

Controls should be cost effective

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection

Which Control?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection
Risk
Degree of assurance required
Cost
Ease of Implementation
Servicing
Legal and regulatory requirements
Customer
and
other
contractual
requirements
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control Selection - Cost
Budget limitations
Does the cost of applying the control
outweigh the value of the asset
May have to select Best Value range of
controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Ease of Implementation
Does environment support control
How long will the control take to
implement
Is the control readily available

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Control - Servicing
Are skills available to manage controls
Are upgrades readily available
Is equipment supported by local
engineers or suppliers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls
The policies, practices and organizational
structures designed to provide reasonable
assurance that business objectives will be
achieved and that undesired events will
be prevented or detected and corrected

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Power Outage Mitigation
Provide one hour of uninterrupted power on
all servers used internally
Provide eight hour of uninterrupted power on
all web server and support hardware
Replace desktop systems with laptops where
possible
Alternate power supply
DG Set
UPS/voltage regulators

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Fire Damage
Automatic and manual fire alarms
strategic locations
Fire extinguishers at strategic locations

at

Halon or CO2 or water?

Automatic fire sprinkler system
Control panels
Automatic fire proof doors
Master switches both inside and outside IS
facility
Wiring in closets
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Water Damage
IS facility should not be on the ground
floor
Water proof ceilings, walls and floors
Drainage systems
Water alarms
Dry pipe sprinkler system
Cover hardware with protective fabric
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Controls of the Last Resort (Insurance)
IS equipment and facility
Media reconstruction (Software)
Extra expense
Business interruption
Valuable papers and Records
Errors and omissions
Fidelity coverage
Media transportation
Extra Equipment Coverage
Specialized Equipment Coverage
Civil Authority

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a contingency?
An event with a potential to disrupt
computer operations, critical missions
and business functions
Reasons:
Power outage
Hardware failure
Fire
Storms

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster?
A contingency event which is very
destructive
Disasters results from threats

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Disaster
Crisis Phase
Emergency Response Phase
Recovery Phase
Restoration Phase

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disasters
New York WTC collapse
Gujrat earthquake
Power Outage knocks out a data server
Sprinkler system leaks
Chemical spills from a tanker

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
I Liberty Plaza Head Quarter of Nasdaq is
across the street from WTC
CIO Gregor Bailar provides an inside look at
how Nasdaq got back up and running after
the Sept. 11 tragedy
What was happening at 1 Liberty?
They began evacuating after the first plane hit.
Our security guards on their own accord
evacuated our floor at least, so most of our
people were on the ground when the second
plane hit
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Halting the market wasn't a step you
could
take
lightly

"Yes, halt the market."

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
The first thing we had to understand was
our personnel situation
Then we broadened the investigation to
learn who was affected among our traders
Then we had to understand the situation
from a physical perspective
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Did we lose a building?
Did we lose a data center?
Did we lose connectivity?
What have we got in the way of physical
damage that's going to take a long time to
restore?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did the command center operate?
Next we needed to know the regulatory
situation:
Are people trading today?
What's the landscape of the trading
industry?
It was literally in that order
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
Nasdaq is highly redundant
We have servers in different buildings
Every single one of our traders is
connected to two different Nasdaq points
of presence or connection centers
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
Some of your traders were in trouble, but
Nasdaq's systems were all up?
There are four connection centers alone in
downtown Manhattan
20 connection centers around the United States
Every single server connects to two of those
centers through two different paths, and often
through two different vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
How did you prepare for Monday?
We started industrywide testing on Saturday at
7 or 8 in the morning, and by 11:30 that
morning, we had achieved 98 percent of the
volume. And then on Sunday we did a half-day
of retesting with people who wanted to add a
little more volume capability.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What did Nasdaq lose over the downtime
and what did it cost to get back up?
We have interruption insurance, so we
hope to recover most of it, but it's in the
millions, and it could crest tens of millions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
What were the Disaster recovery lessons for
Nasdaq?
We learned that distributed systems are really
good. You have to think about how your
business
has
concentrated
people
or
operational centers in certain places. You've got
to consider if it's the wisest distribution. We feel
we were lucky having some folks in Connecticut
and some in Maryland. Even if we had lost
some of our senior management at 1 Liberty
Plaza, we would have still had a senior team
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
This was a true test of people's backup
strategies
Did you ever test your backup strategy?
Have you worked out of your backup
center?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
Do you know how to get people there?
Do you know the critical phone numbers?
A lot of people don't have phone numbers
as part of their continuity of business plan
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
I think people will have to look very
carefully at their backup strategies and
see whether they can communicate with
everybody easily, whether the phone
numbers are not stored in that same

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Nasdaq Story 11 Sept, 01
After living through this, what would you
advise other CIOs to consider?
building that could experience the
Disaster, and whether they've got hot
backups
Hot backups are going to be much more
popular than they have been in the past
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Yellow line shows normal traffic

Naresh Gandhi FCA, D.I.S.A. (ICAI)

How did AT&T Control
141 video display screens show the status of
all the networks
Network managers put controls on the
network to slow down the flow of inbound
calls
Keep circuits available for outbound calling
As a result, the AT&T long distance network
carried a record 431 million call attempts on
Sept. 11, 101 million more than the previous
high-traffic day
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Business Continuity Plan
The BCP focuses on sustaining
an
organization’s
business
functions during and after a
disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Plan
The DRP applies to major,
usually catastrophic, events that
deny access to the normal facility
for an extended period

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Business Recovery Plan
Addresses restoration of business
processes but lacks procedures

Continuity Of Operations Plan
Addresses restoring H.Q. level issues at
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Plans
Crisis Communication Plan
A plan responsible for public communications

IT Contingency Plan
Plan for each major application

Occupant Emergency Plan
Response Procedures for Occupants

Test plan
Identifies deficiency in different Plans

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Cyber Incident Response Plan
The IRP defines strategies to
detect, respond to and limit
consequences of malicious cyber
incident

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
Serious disruption
Major disruption
Catastrophic disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Minor disruption
No damage or loss
Temporary power failure or fluctuation
Communication failure
Unavailability of non critical personnel

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Serious disruption
Repairable damage to equipment, office
area, data, records, software
Equipment breakdown
Failure of AC
Human error

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Major disruption
Destruction of equipment, office area,
data
Complete loss of equipment
Structural mishap
Malicious loss of data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Category of Disaster
Catastrophic Disaster
Total loss of office area, data or people
due to natural Disaster like fire, flood etc.
Complete destruction of personnel
Complete destruction of facilities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

What is a Disaster Recovery Plan?
A plan that provides vital pre planned
frame-work
for initiating recovery operations
provides guidance for damage assessment
planned actions to resume critical IS and
functional activities
restore full business operations
minimum delay and disruption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Coping with Emergencies
Idea of DRP is to think before actual
happenings:
How likely is the happening
What can be done on happening
What can be done to lessen their
likelihood
What can be done to prepare for these
events

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Key Issues
How to develop the plan
How to test the plan
How to maintain
How to keep continuity of operations

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
A total plan for all departments integrated
together
Must be written, tested and documented
Clear assignment of responsibilities to
employees
It should address
main frame computer
mini computer
micro computer

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP Overview
It should address...
networks
automated operations
semi automated operations
manual operation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Why Disaster Recovery Plan
To respond to Disasters of any type
To curtail revenue loss
To avoid loss of critical data
To maintain competitive edge
To maintain employee productivity

Naresh Gandhi FCA, D.I.S.A. (ICAI)

DRP - Phases
Identifying threats and vulnerabilities
Developing the contingency plan
Conducting tasks and drills
Updating and maintaining the plan

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Ranking of Objectives of DRP
Protection of organizations employees
and public
Minimizing the financial impact
Limiting extent of damage
Reducing physical damage

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Planning Responsibilities
Prime responsibility for developing,
maintaining, executing contingency
plan is with senior management
Recommended approach to planning is
by teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
DRP Plan
Top down approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan
Top down approach - it involves
Senior management
Line management
IS management
System auditors
End user

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques - DRP Plan Steps
Conduct impact analysis
Plan design
Plan development
Plan Implementation
Plan testing
Plan Maintenance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Ongoing maintenance
Combination of top down and bottom up
approach

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Why do we require plan?
Responsibility to
shareholders
customers
suppliers
employees
legal

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in a planning
process?
Technical aspects
Back-up employees
Functional user operations
Selection of DRP team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Application System
Prioritization
Critical application systems
Prioritize item
Conduct impact analysis
Prioritization
to
be
based
on
importance to the organization and not
to individual
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
What can go wrong in system
prioritization?
Majority of the system may not be
critical
Most business user claim their system
qualify as critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee
Responsible for developing DRP
Knowledgeable members
Specific assignments

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning Committee Members
Knowledgeable members
Project leaders
Well versed with IS requirements
From security, fire, operations, production
control,
legal,
audit,
users,
telecommunication, network, system and
application programming

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Recovery Capability Assessment
Current security
Disaster recovery capabilities
Weaknesses
Analysis
Recommend prioritized actions

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan Development Alternatives
In-house
Ready made software package
Hire consultants
Combination of the above

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Hardware
System software
Personnel's
Telecommunications
Backup data file
Vendor support availability
Security

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Plan requirement analysis
Office equipment
Logistics
Storage
Funding
Purchase orders

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Purpose and scope
Testing and Recovery procedures
Vendors with address and tele nos.
Location of contingency plan
Procedure for post recovery
Emergency recovery team members with
responsibility
Phone list for fire, police, hardware, software,
major suppliers and customers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Techniques
Planning document contents
Contact person with address at backup location
Description and configuration of hardware and
software
Backup contractual agreements
Application system job priorities
Logistics
Insurance carrier phone nos.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Identifying the critical functions
Identifying the resources supporting critical
functions
Anticipating potential contingencies or
Disasters
Selecting contingency planning strategy
Emergency response
Recovery
Resumption

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Contingency Planning Process - Steps
Implementing the contingency strategy
Implementation
Documenting
Training

Testing and revising the strategy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Disaster Recovery Teams
Emergency
action
team
Disaster assessment
team
Recovery management
team
Public Relations team
Off-site storage team
Software team
Application team

Security team
Communication team
Transportation team
Facilities team
Administration team
Operation team
Procurement team
Salvage team
Staff
Coordination
team

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Recognize an emergency
Contact the proper authority
Specific nature of the emergency
Time of the emergency
Location of the emergency
Extent of damage or status of the emergency
Danger or injuries to people
Cause of the emergency

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate the plan
Gather the response team
Brief the response team
Activate emergency command center
Communications equipment
Personal protective equipment (First Aid Kits)
Records and information needed to respond
Reference manuals, including maps

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activating the Plan
Activate emergency command center
Emergency communication directory
Back-up power supply, including fuel
Office supplies, including computers with internet
access
AM/FM radios, cable television
Food, water, and other personal supplies to last
several days
Message boards, overhead projectors and other
presentation materials and equipment

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Maintain communication
Initiate recovery activities
Assemble a damage assessment team
Gather initial damage estimates
Facility structural damage
Damage to products, materials, or supplies,
including records and information
Damage to vehicles or equipment
Damage to property

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Gather initial damage estimates
Personal injuries
Costs to recover (materials and supplies)
Costs to recover (repairs and
maintenance)
Costs to recover (labor)
Loss of revenue

Compile information into a report
Initial Damage Assessment Report
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Initial Damage Assessment Report
Facility Damaged:

Location:

(Attach map with clearly marked location and travel route to site, If needed)

Describe Damage or Injuries:
List Work Needed to Repair Sites:

List Work that has been completed:
(Attach activity report if any work has been completed)

Estimated Cost:

(Develop a detailed breakdown of personnel, equipment, and materials for complete damage assessment; include estimate of any loss of revenue)

Notes/Comments:
Damage Report Completed By:
Dated:

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Train the damage assessment team
Initiate security activities
Issuing identification badges to employees and
other authorized personnel
Locking doors if personnel cannot monitor the
facility during an emergency
Installing signs designating secured or restricted
area
Placing a sign-in sheet at the command center
and logging time in/out
Creating a list of authorized personnel and
monitoring it
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Activation of the Plan
Initiate security activities
Ensuring that personnel know who is authorized to make
decisions
Maintaining supplies to board up windows quickly
Securing cash operations immediately
Asking for police assistance
Asking a neighbor to help monitor security
Notify recovery site
Notify impacted staff
File insurance claims
Primary site procedures
Return to normal operations
Post recovery analysis

Activate Contingency Arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Develop Recovery Priorities
R e s o u r ce

R e co ve r y P r io rity

A u t h e n t ic a t io n S e r v e r

H ig h

D a ta b a s e Se rve r

H ig h

5 D e s k t o p Co m p u t e r s

H ig h

1 Hub
E - m a il S e r v e r
P r in t e r
R e m a in in g D e s k t o p Co m p u t e r s ( 4 5 )
R e m a in in g H u b ( 5 )

H ig h
M e d iu m
M e d iu m
Lo w
Lo w

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternative
Centralized Systems
Hot Site
Warm Site
Cold Site
Mobile Site
Mirrored Site
Duplicate Information Processing Facility
Reciprocal Agreement
Commercial Service Bureaux

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Hot Site
Fully configured
Ready for operations
Intended for emergency operations
Use for limited time operations
Most expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Warm Site
Partially configured
Without CPU
Less expensive then hot site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Cold Site
Only basic environment
Activation takes several weeks
Least expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mobile Site
Empty shell facilities
Transportable
Available on lease through vendors

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Mirrored Site
Fully redundant
Real time information mirroring
Identical to primary site
Most expensive to maintain

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Duplicate Information Processing
Facilities
Dedicated self developed recovery sites
Backup of critical applications
Site chosen to be away from primary site
Resource availability to be assured
Regular testing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Recovery Alternatives
Reciprocal agreements
agreements between organizations with
similar equipments or applications
low cost
configuration compatibility

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Service Bureaus/ASPs
Emergency processing services
Application specific

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Alternate Site Selection Criteria
S it e

C o s t

H a r d w a r e
E q u ip m e n t

T e l e C o m m u n ic a t io n

S e t u p
T im e

L o c a t io n

Co ld Site
Wa r m Site
H o t Site
M o b ile Site
M ir r o r e d Site

Low

None

None

Long

Fixe d

M e d iu m

P a r tia l

P a r tia l/ Fu ll

M e d iu m

Fixe d

M e d iu m / H ig h

Fu ll

Fu ll

Sh o r t

Fixe d

H ig h

Dependent

Dependent

Dependent

N o t Fixe d

H ig h

Fu ll

Fu ll

None

Fixe d

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Redundancy
Surplus capacity
load/failure

created

for

extra

Alternative Routing
Routing by means of alternate medium

Diverse Routing
Split or duplicate cable sheet

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Telecommunication Network
Backup
Last mile circuit protection
Local communication loops

Long haul network diversity
T1 circuits between network carriers for
automatic re-routing in case of failures

Voice Recovery

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Data Recovery Plan
Critical
Vital
Sensitive
Non Critical

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Techniques

Full Backup
Incremental Backup
Differential Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Floppy Diskettes
Compact Disk
Replication
Internet Backup

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Methods
Removable Cartridges
Tape Drives
Networked Disk
Remote Mirroring

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Where will media be stored?
What data should be backed up?
How frequent are backups conducted?
How quickly the backups are retrieved in the
event of an emergency?
Who is authorized to retrieve the media?
How long will it take to retrieve the media?
Where will the media be delivered?
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Answer the following
Who will restore the data from the media?
What is the tape-labeling scheme?
How long will the backup media be retained?
When the media are stored onsite, what
environmental controls are provided to
preserve the media?
What types of tape readers are used at the
alternate site?

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
It should contain
Backup of tapes, disks, master and transaction
files
Backup copies of current application software
Upto date copy of contingency plan
Upto date operation manuals, system and
program documentation

Each facility must have backup media library

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Media Library
Should be at some distance from main
facility
Subject to physical and environmental
control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
What can go wrong
May contain only magnetic or electronic
record not paper record
Access not available at all time
Critical data may not be stored

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Backup Procedures
Determining Backup Priorities
Postpone less urgent task
Identify in advance critical function
Eliminate or postpone non-urgent
portion of record keeping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Plan Testing
Scope
Time-frame
Teams
Objectives
Methodology

Conduct
Evaluation
Weaknesses
Improvement
Revision

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Phases of Testing
Pre test
Test
Post Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Type of Tests
Checklist test
Structured walk through test
Simulation test
Parallel test
Full interruption test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Result Analysis
Time
Amount
Count
Accuracy

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Test Examples
Contact every level of call tree successfully
within 1 hour
Restore critical system off-site within 48
hours
Evacuate building in 15 minutes
Contact key vendors within 1 hour
Fire drills carried selectively
Check jockey pump pressure
Notify participants in advance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Awareness and Training
Walkthrough Session
Scenario Workshop
Simulation of a Live Test

Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Strategy as per changing need of the
business
New applications documented
Change in critical applications
Change in hardware or software
environment
Plan maintenance methods
Naresh Gandhi FCA, D.I.S.A. (ICAI)

BCP Maintenance
Schedule
for
periodic
review
and
maintenance
Review of revisions
Conducting scheduled and unscheduled
tasks
Training recovery personnel
Maintaining rounds
Updating personnel changes

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Record of Change
P a g e

N o .

C h a n g e
C o m m e n t

D a t e o f
C h a n g e

S ig n a t u r e

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Law And Standards

Naresh Gandhi FCA, D.I.S.A. (ICAI)

HIPAA
Documented
Practices
for
data
protection and continuity of operations
for health care industry

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GBL And The Expedited Funds
Availability Act
Standards for safeguarding security,
confidentiality of customer records

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Sarbanes-Oxley Act
An Act for protecting investors by
improving reliability of corporate
disclosures and internal control

Naresh Gandhi FCA, D.I.S.A. (ICAI)

GASSP
Principles supporting the Generally
Accepted Accounting Principles and
similar models

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Information Technology
Infrastructure Library
A collection of best practices in IT
service management

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel Committee On e-Banking
Principles for effective capacity,
business continuity and contingency
planning of e-banking systems and
services

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Basel II Capital Accord
Encourage financial firms to be more
proactive and forward looking in
financial activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

SAS 70
Internationally recognized auditing
standard for service organization

Naresh Gandhi FCA, D.I.S.A. (ICAI)

COBIT
A framework resulting in control
objectives considered to be good or
best practices

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Networked Systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies
Eliminating single points of failure
Redundant Cabling and Devices
Remote Access
Wireless LANs

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies For Fault Tolerant
Implementation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
A system which uses multiple hard drives
to share or replicate data among the drives
A system that combines multiple hard
drives into a single logical unit

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
BENEFITS
Higher data security
Fault tolerance
Improved availability
Increased, Integrated capacity
Improved performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Data redundancy techniques
Mirroring
Parity
Stripping

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
MIRRORING
Data in the system is written
simultaneously to two hard disks
instead of one

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID

MIRRORING
Advantages
Data redundancy
Fast recovery

Disadvantages
Expensive

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Duplexing
Data in the system is written
simultaneously to two hard disks with
separate controllers

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
Disk Duplexing

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING
A data element is broken into multiple
pieces at bytes level or in blocks

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
STRIPING

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID
PARITY
It involves the use of parity information, which is
redundancy information calculated from the
actual data values

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-0
Technique : stripping without parity
Files broken into stripes
No redundancy
Storage efficiency: 100% if drives identical
Minimum of 2 hard disk required
Fault tolerance none
Cost lowest of all RAID levels
Recommended uses non critical data

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-0

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, 16 kiB stripe size
RAID 0 array. The red file is 4 kiB in size; the blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB.

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-1
Technique: mirroring
Exactly 2 hard disks
Fault tolerance very good
Storage efficiency: 50% if drives identical
Cost Relatively high
Recommended
uses for applications
requiring high fault tolerance eg.Accounting
and other financial data.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-1

Illustration of a pair of mirrored hard
disks,
showing
how
the
files are duplicated on both drives.
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Functions
of EDI
RAID LEVELS
RAID-2
Technique used Bit level striping with ECC
Hard disk requirements-10 data disks & 4 ECC disks
Random read performance: Fair
Random write performance: Poor
Fault tolerance only fair
Cost very expensive
Recommended use- not used in modern systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-3
Technique: Byte level striping with dedicated parity
Minimum 3 hard disks
Random read performance: Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-1)
Fault tolerance good
Cost: Moderate
Recommended uses: Applications working with large files
that require high transfer performance

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-3

This illustration shows how files of different sizes are
distributed between the drives on a four-disk, bytestriped RAID 3 array. The red file is 4 kiB in size; the
blue is 20 kiB;
the green is 100 kiB; and the magenta is 500 kiB,.
Notice that the files are evenly spread between
three drives, with the fourth containing parity
information (shown in dark gray)
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-4
Technique used: Block level striping with
dedicated parity
Random read performance: Good
Random write performance: Fair
Array Capacity: Size of smallest drive*(no. of
drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended uses: Not commonly used

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-4

This illustration shows how files of different sizes are
distributed between
the drives on a four-disk RAID 4 array using a 16 kiB
stripe size. The red file is 4 kiB in size; the blue is 20
kiB; the green
is 100 kiB; and the magenta is 500 kiB, Notice that
as with RAID 3, the files are evenly spread between
three drives, with the fourth containing parity
information (shown in gray).

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-5
Technique used: Block level striping with distributed parity
One of the most popular RAID level
Random read performance: Very Good
Random write performance: Only Fair
Array Capacity: Size of smallest drive*(no. of drives-1)
Minimum 3 hard disks
Fault tolerance good
Cost: Moderate
Recommended
uses:
ERP,
Relational
database
applications & other business systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-5

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 5 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-6
Technique used: Block level striping with dual distributed
parity
Minimum 4 hard disks
Random read performance: Very Good
Random write performance: Poor
Array Capacity: Size of smallest drive*(no. of drives-2)
Fault tolerance very good
Cost: High
Specialized controller
Recommended uses: Same as RAID5 But not popular as
cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID-6

This illustration shows how files of different
sizes are distributed
between the drives on a four-disk RAID 6 array
using a 16 kiB stripe
size.The red file is 4 kiB in size; the blue
is 20 kiB; the green is 100 kiB; and the magenta
is 500 kiB,
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID LEVELS
RAID-7
Proprietary product of Storage Computer Corporation
Hard disk depends
Random read performance: Very Good
Random write performance: Very Good
Array Capacity: Depends
Fault tolerance very good
Cost: Very High
Specialized controller
Recommended uses: Not popular as cost high

Naresh Gandhi FCA, D.I.S.A. (ICAI)

MULTIPLE(NESTED) RAID LEVELS
RAID-0+1 & RAID-10
Technique used: Mirroring & Striping without parity
Most popular of the multiple RAID Levels
Minimum 4 Hard disks
Availability very good for RAID-01,excellent for RAID-10
Random read performance: very good
Random write performance: good
Fault tolerance very good
Cost: High
Recommended uses: Often used in place of RAID-1 or
RAID-5 for higher performance
Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 0+1

Naresh Gandhi FCA, D.I.S.A. (ICAI)

RAID 10

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Data communications

Dial up
Circuit Extension
On demand service from the carriers
Diversification of services
Microwave communications
VSAT

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Strategies for Voice communications

Cellular phone backup
Carrier call rerouting systems
Backup PBX systems

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Electronic vaulting
Electronic vaulting is the ability to store
and retrieve backup electronically in a site
remote from the primary computer centre

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Remote Journaling
Parallel processing of transactions to
an alternate site

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Database shadowing
Duplicating the
multiple servers

database

sites

to

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Back up strategies
Dual Recording
Dumping
Logging Input Transactions
Logging Beforeimages
Logging Afterimages

Naresh Gandhi FCA, D.I.S.A. (ICAI)

NETWORK ATTACHED STORAGE
A class of systems that provide file
services to host computers
Dedicated storage solution that is
attached to a network topology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
A network of storage disks
It connects multiple computers to a
centralized pool of disk storage
Fibre Channel Technology

Naresh Gandhi FCA, D.I.S.A. (ICAI)

STORAGE AREA NETWORK
Advantages
Centralization of storage
Storage & server resources grow
independently
Data transfer directly from device to
device

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
It consists of distributing user activity
across a network so that no single server
is overloaded
Enables application to operate even if one
of the server is down

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Server Load Balancing
Load Balancing done by load balancers
Routers & switches with application
specific integrated circuits

Naresh Gandhi FCA, D.I.S.A. (ICAI)

IS Audit Technique
Role of Auditor
Observer
Reviewer
Reporter

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Current copy of BCP
Evaluation of documented procedures
Critical application identified
All application reviewed
Support of critical applications
Review of BCP personnel, vendors, hot
site contents, back-up contents
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Review of BCP
Interview key members
Evaluation of emergency procedures
Written procedures of recovery teams

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Interview personnel and reading documents
Risk analysis documents
Disaster recovery requirement documents
Disaster recovery training documents
Disaster recovery plan testing documents
Disaster recovery plan maintenance procedures
Alternative processing contracts with back-up
facilities
Third party audit reports

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Risk analysis
Critical application identifications
Classification of critical data
Minimum hardware configuration
Existing file backup procedures
Record retention and rotation schedules

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities
Commercial
Private
Verify financial background and reputation
Visit the facility
Assess the storage standards
Method of separation of media
Mode of transportation of media

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Off-site storage facilities ...
Review flow of media in and out
Visitors access
Terms and conditions of vendors
Confidentiality of data
Periodic inventory of media
Other physical and environmental controls

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents
No of subscriber and capacity of computer in
backup facility
Fee structure of vendor
Off-site media storage facility
Liability of vendors for loss or damage at off-site
Name, addresses Tele Nos. of recovery team
members
Transportation arrangements

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Procedure
Plan Documents …
Equipments and supports
Emergency team instructions for evacuations
and recovery
Tele Nos. of hardware, software supply vendors
Procedures to handle bombs or arson threats
Plan testing procedures
Network
configuration
diagram
and
documentation

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Adequacy of risk analysis
Adequacy of off-site storage facilities
DRP documents is complete, clear and
under- standable
Adequacy
of
management
preparedness
Adequacy
of
plan
maintenance
procedures
Naresh Gandhi FCA, D.I.S.A. (ICAI)

Audit Objectives
Identify problems, concerns
Make cost effective recommendations
Identify over secured and under
secured activities

Naresh Gandhi FCA, D.I.S.A. (ICAI)

Thanks...

Naresh Gandhi FCA, D.I.S.A. (ICAI)